IRS Announces New $1,400 Relief Payments: The stimulus check was no less than a boon for millions of people living in the US. During the COVID pandemic, when jobs were closed, business came to a standstill and millions of families started having difficulty in meeting their daily needs, the US government started these economic relief packages to help the people. Under these packages, every eligible person was given cash so that they could meet basic expenses in difficult times.
But now the situation is that the federal tax deadline is going to come in just a few days and this is the last chance to claim your 2021 stimulus check if you have not been able to get it.
What is this stimulus check after all?
Many people who lost their jobs or whose income decreased during the pandemic are associated with this scheme. In 2021, the amount of the stimulus check was fixed at $1400 per person.
- Single person: $1400
- Married couple: $2800
- Family with two children: Maximum $5600
The purpose of this was that families could meet their rent, medicines, grocery and other essential expenses.
What to do if you did not get money?
Many people did not get this payment even though they were eligible. There can be many reasons for this, such as:
- You did not file your 2021 tax return.
- Your bank account was entered incorrectly.
- The check sent to your address returned.
- You thought your income limit was high so you did not claim it.
In such a situation, the IRS has said that there is still a chance. You can claim this amount through Recovery Rebate Credit.
Income Limit
The IRS has made it clear that a limit of income has been fixed to get this relief amount.
- Single (unmarried): If your Adjusted Gross Income (AGI) is up to $75,000, then you will get the full amount.
- Married filing jointly (married couples): If your AGI is up to $150,000, then you will get the full amount.
After this, the amount gradually starts decreasing and ends completely at $80,000 for Single and $160,000 for Married.
Easy way to check from IRS account
The IRS announced in December 2024 that special payments would be sent to about 1 million taxpayers because they did not claim this credit in 2021.
The IRS says that the easiest way to find out if you received this check or not is:
- Go to the IRS website and create an online account.
- After logging in, go to the Tax Records section.
- There will be a toolbar called Records and Status, by going to which you can see when and how much amount your Economic Impact Payments (Stimulus Checks) were sent.
Even if the money did not come to your account, you will still see the entry there.
For example:
If the IRS says that your $1400 check was sent in 2021, but it did not reach the bank account or the check sent by mail was returned, then you are now entitled to get this money again by filing a tax return.
What if the 2021 return is not filed?
Many people do not file tax returns thinking that their income was not that high. But the biggest issue here is this – if you did not file your 2021 return, you cannot claim the Recovery Rebate Credit.
Suppose you are a student whose income was very low and hence you felt that there is no need to file a tax return. But if you did not file a tax return that year, then the IRS will not give you this stimulus check automatically. You will have to go and file your 2021 return yourself.
Deadline
The IRS has clearly said that its last chance is till April 15, 2025.
That is, if you do not file your tax return by that day, then you will lose this money forever.
What to do if there is doubt?
Many times the IRS records say that the money has been sent, but people say that they never received it.
In such a situation, the opinion of experts is that:
- If you have even the slightest doubt whether you received this check or not,
- Or you are not sure whether you filed the return in 2021 or not,
Then it is best that you file the return for 2021.
Syracuse University professor Robert Nassau, who runs a low-income tax clinic, says – “If you have even the slightest doubt, it is better to file the return. Otherwise you can lose this money forever.”
Why is it necessary to claim this money?
Many people think that $1400 is not a big amount. But if there are four members in the family, then it can reach up to $5600. This amount can cover three months’ rent, children’s school fees, or medical insurance for an average family in America.
Understand with an example
Suppose:
- Ramesh (fictitious name) is a taxi driver in New York. His income was low in the year 2021 and he did not file the return.
- He thought that the money from the government would come automatically. But he did not get any check.
- Now if Ramesh files the 2021 return before April 2025 and claims the Recovery Rebate Credit, he can get the full $1400.
Similarly, if there is a married couple and they have two children, they can avail the benefit of $5600.
Common misconceptions
- Myth: The IRS will send the money automatically.
Truth: If you do not file the return, you will not get the money. - Myth: My income was low so there is no need to file a return.
Truth: It is necessary to file a return so that you can claim the credit. - Myth: The deadline has been extended.
Truth: The IRS has clearly stated that the deadline is April 15, 2025. There will be no chance after this.
Conclusion
This stimulus check from the IRS is a much-needed relief for families who suffered financial crisis during the pandemic. If you have not claimed it yet, then this is your last chance.
- Create an IRS account and check the status of the check.
- If you have not filed the return, then file the 2021 return immediately.
- Even if there is any doubt, file the return, otherwise this money will be lost forever.
Remember, after April 15, 2025, this opportunity will be closed forever.